Just saw a speech by Tim Draper, the legendary Silicon Valley venture capitalist, at the Bitcoin conference, and some of his viewpoints are truly thought-provoking.

He mentioned that he lost everything during the Mt. Gox incident; that exchange collapse caused Bitcoin to drop by 10-15% at the time, and he thought Bitcoin was doomed. But later, he gradually realized that people were using Bitcoin for remittances, businesses paying workers without bank accounts, and small communities in Africa and Southeast Asia integrating into the global economy. This completely changed his perspective.

What’s even more interesting is his prediction for the future. He believes there will be a transition period from the US dollar to stablecoins and then to Bitcoin. Because the dollar is controlled by the government, stablecoins are more liquid but still depreciate with government spending. Bitcoin is different; it experiences cyclical volatility but is a long-term appreciating asset.

Tim Draper also shared a childhood story: his father gave him a million-dollar bill from the Confederate States of America, telling him that this paper would eventually become worthless. He now thinks the same could happen to today’s US dollar.

The most shocking part is his shift in stance on holding Bitcoin. He used to say, “Buying Bitcoin is quite interesting,” but now he directly states, “You’d better hold Bitcoin.” He even believes that if a company’s assets don’t allocate 5-10% in Bitcoin, it’s irresponsible. Families should hold Bitcoin equivalent to six months of living expenses, and governments should also establish reserves.

The logic from this veteran Silicon Valley investor is very clear: the banking system might collapse, fiat currencies could depreciate, and Bitcoin is the only asset not controlled by the government. He even said that holding Bitcoin has shifted from an investment opportunity to a responsibility. When everyone starts demanding Bitcoin for transactions, bank runs will happen.

Looking back at the trend in Silicon Valley venture capital, more and more institutions are beginning to allocate to Bitcoin, and this logic seems to be gradually taking hold. Whether you agree with his views or not, at least he raises a question worth serious consideration: in this uncertain era, are your asset allocations ready?